By: Anita Mar
What should tech startups do to legally protect their business?
Many new and aspiring business owners are reluctant to share their new business idea. The is of course a risk that by sharing an idea with others that the idea could be copied and produced as a competitor. While this fear may be founded, you should understand how you can legally protect your startup, as there are a few options.
Over the last 5 years, the rate of business creation within the tech industry has continued to increase so it’s important for all new ventures to protect their identity.
Can a business startup protect an idea?
You cannot protect a business idea. This comes as a surprise to many new business owners. While a business idea cannot be protected, creative expressions of an idea can be protected. Examples of artistic expressions can be a painting, an article, a song, music or a poem. All of these are protected by copyright. A business idea itself is not considered an artistic work and cannot be protected.
The name, however, under which a startup proposes to trade could be registrable as a trademark.
Similarly, if the business idea is to produce or make a new and innovative product then, this creation/invention may be protected through a patent. Every case is individual and should be referred to an expert before a decision is made.
How can you protect a startup?
Use a non-disclosure agreement (NDA) – As in most cases, you cannot protect a business idea, an NDA is a great option and can be used to prevent other people and companies from sharing the idea. Developers, employees and others with whom you share your idea with can be bound by an NDA.
An NDA is a legal contract between two people or entities that states what information will be shared between them and what information cannot be shared with other people or companies.
Some cautious tech startups have a policy of getting everyone to sign an NDA including investors. Some consider this to be an unnecessary step so it is advisable that you remain flexible when dealing with investors, especially when they have a large stake in your business.
Some cautious tech startups have a policy of getting everyone to sign an NDA including investors. Some consider this to be an unnecessary step so it is advisable that you remain flexible when dealing with investors, especially when they have a large stake in your business.
Start building your business beyond the idea stage – As a tech startup, you will have to create an initial base code, which could be eligible for copyright protection. If you hire developers to work for you, then you should ensure to assign the copyright to yourself as the business owner. Copyright protection relies on clear ownership and you should keep all records that prove creation and/or authorship so that the copyright can be verified.
Read more >> https://trademarkangel.com/what-should-tech-startups-do-to-legally-protect-their-business/
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